not sure about investing, let alone teaching kids how to invest? use these foolproof tools and resources when teaching kids about actions.
One of the most common questions I’ve been asked over the years has come from parents concerned about teaching their children about stocks.
They want a guru to help their son become, if not the next warren buffett, then certainly their nephew.
And I don’t blame them.
For starters, teaching anyone about the stock market and how to invest can be quite intimidating when you don’t always understand the stock market and how to invest.
Not only that, but it seems to be an incredibly important topic, as we all know that the sooner you start investing, the better off you’ll usually be.
there’s a lot of pressure, moms, to do this right!
So today I want to share with you some really great resources for teaching kids about stocks and the stock market. tools and resources that will make your job much easier and allow you to teach your child to invest without knowing all the ins and outs of investing yourself.
don’t be embarrassed, here!
become your kids’ trading mentor, not their trading guru
I really want to address this feeling of inadequacy that comes up over and over again from parents desperate to find someone to teach their kids how to invest.
psst: don’t you? skip to next section.
This is what I mean:
information on how you can lead your child’s learning of the stock market, without becoming completely comfortable with investing yourself.
Let me say it again: You don’t have to be comfortable with the stock market to start teaching your own kids about it.
why is that?
- You are at least one step ahead: You can teach someone something if you are one step ahead in your learning. Do you feel like you are at least one step ahead of your child in your knowledge of investments and the stock market? I would say yes.
- Think of yourself as a mentor, not a guru: This is really the biggest secret of all to raising a child about investing in the stock market, or really, anything that seems too complicated. treat them like they’re their mentor, working side by side with them, learning with them along the way, instead of treating them like some expert guru who already has to know everything. If they ask you a question that you don’t know the answer to? Say you don’t know, and then offer to help them find the answer so you can both learn together. See how much weight it takes off your shoulders?
In other words, learn alongside them. be honest when you don’t know something. be curious.
Trust me, this will make the experience that much better for both of you and will eliminate any intimidation or anxiety you may feel about teaching kids inversions.
teaching children about actions: tools and resources
Now that we’ve tackled the trust part of this, let’s jump in feet first with some awesome tools and resources on how you’ll teach kids investing.
1. sign them up for an online stock market game for kids
Teaching kids about stocks through stock market games is one of the best and easiest tools I share with you today.
That’s because these games that teach investing provide structure that doesn’t have to come from you: your child joins online, with or without a team, and follows along.
they may have questions for you, for sure. but the good news is that they will usually have access to some kind of support or person/organization to email them questions that you can’t help them with.
here are several free online stock market games for kids:
- the personal finance lab stock market game
- the stock market game
- how the market works
- the stock market fantasy stock
- build your stax
2. give them investment books for kids and teens to read
There are some really great investing books for kids and teens that can enrich an online stock market game or any other experience you choose for your child from this list.
Books are also a great way to get your child’s feet wet as you decide on the best way to teach children about actions.
psst: that’s how I started! I kept asking my parents about the stock market and really got nowhere. Eventually, I had them take me to a bookstore and bought an investment book for suckers to peruse.
- Growing Money: A Complete Investing Guide for Kids
- The Young Investor
- Kids Frontline
- How to Turn $100 into $1,000,000
- Rich Dad Poor Dad for Teens
- The Teen Investor
- The Motley Teen Investing Guide
3. buy them shares to follow
Wondering how to gift stock to a child? then this resource is for you!
My favorite part of this next resource that I want to share with you is that it comes with a coupon to buy your child’s first shares ($20 value).
I’m a $ Stockholders Pack: Stock Basics for Kids & teenagers
I call this an investment kit, not just an investment book, because it takes you through different stock market terms, strategies, and learnings from a shareholder’s point of view (which they will be, after you buy that first action for them).
Not only can they follow along and read/learn/do the activities in this book, but they can immediately apply what they are learning by watching what their own stocks do in the market.
It’s like a live investment experiment for them!
tip: You can also help them buy stocks through these 7 stock apps for kids.
4. enroll them in a free online investment class for kids
There are actually a ton of free online investing money classes for kids and teens that can really help explain the basics (and more) to your child about investing.
here are some resources to check out:
- nefe high school financial planning program
- the actuarial foundation
- we economics is the street
- biz kid$
5. send them to a money camp
There are in-person money camps and financial literacy camps for kids that include an investment component.
here is my article on money camps for kids, with more details.
6. give them stock market worksheets
worksheets can really help structure how you teach your child about stocks and investments.
They are especially useful if you don’t want them to have actions yet.
These are some of my favorite free stock market worksheets for kids and teens.
how do you explain investing to children?
I’d like to leave you with one last piece of advice.
many people want to know how to explain to a child how to invest (as well as what is a good stock to buy for a child).
I want you to try this trick: doing so will make the stock market “make a lot more sense” to your child than if you didn’t.
bridge the gap between the stock market and your child’s everyday life.
Do it by plugging one of the biggest disconnects for kids (and adults) when it comes to the stock market:
- It’s not just “stocks” we’re talking about.
- The stock market is made up of individual companies and corporations.
- When you buy a stock , you are buying part of a company.
I very much wish someone had taken the time to point this out to me when I was a kid; so he could have seen the connection between the companies he regularly saw in the store and on TV commercials, and those that intimidate. , scary-looking stock tables.